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With the crypto market eyeing to end August on a sour note, the altcoin sector saw more pain in the short term after the broader market dipped in the past 24 hours. This led to altcoins like TIA facing significant losses on all timeframes.
According to CoinGecko, TIA saw 23% in losses since last week, becoming one of the biggest losers since the market’s correction phase began. Despite the token’s underperformance, August was a great month for on-chain growth for Celestia. The only question now is whether investors are considering these developments to prince-in TIA in the long term.
OurNetwork Modular Ecosystem Review Reveals Quiet Build-Up On Celestia
OurNetwork’s official X account posted about its recent overview of the Modular ecosystem which Celestia is a part of. It revealed several key developments that show the ecosystem has been gathering momentum since the start of August.
JUST IN: Modularity 🧩 | OurNetwork #266
👥 Sector Update | @ayyyeandy
🟣 @CelestiaOrg | @ofernau
🌀 @OmniFDN | @chasedevens
🦦 @alt_layer | @maqstik
⚡ @conduitxyz | @forrestnorwoodLink to read ⬇️ https://t.co/DyCnBHxLWi
— OurNetwork 🔎 (@ournetwork__) August 30, 2024
According to OurNetwork’s official blog post, although the modular sector of crypto faced some resistance due to its chain fragmentation problem, developments on chain abstraction by over 80 teams from different protocols and chains led to better user experience on-chain.
Celestia leads the entire sector by a wide margin. It shows that the platform secured 44% of the total market share of data on data availability providers. This shows Celestia as a major player in the Modular sector.
The platform’s niche of providing EVM blockchains with the infrastructure to verify data without downloading entire blocks is the main reason for Celestia’s jump in market share. From May 29th until August 28th, Celestia has kept pace chasing Ethereum’s position in the data availability niche.
Time will tell whether the platform will usurp Ethereum as the prime data availability layer for EVM blockchains, but investor confidence in Celestia might not be in the position for recovery of TIA.
$4.6 Breakthrough Imminent But Rejection’s Still A Possibility
As of writing, the token is on the path of breaking through the $4.6 ceiling in the short term despite the market sentiment still flashing bearish. With the majority of the market still trying to recover from the disastrous dip, TIA’s potential breakthrough might be rejected.
The relative strength index (RSI) shows that there is a slight dip in bullish momentum, but a flip may occur in the coming days as market volatility slows down. TIA’s significant correlation with Bitcoin will also play a part in the coming rally. Once BTC returns to $60k in the long term, we might see a possible retest of $5 soon; that is if the market flips bullish which may occur later in early or mid-September.
Featured image from RockX, chart from TradingView
